The unemployment rate in Australia has fallen below 5% in February for the first time in eight years.

In seasonally adjusted terms, the unemployment rate came in at 4.9%, being the lowest since June 2011.

The most recent data from the Australian Bureau of Statistics (ABS) revealed that around 4,600 new jobs were created in February – however, the decrease in unemployment was mainly a result of less people on the hunt for jobs, with the participation rate decreasing slightly from 65.7% to 65.6%.

The amount of jobs added in February was not as successful as that in January, however it continued to indicate strong results for the labour market.

Meanwhile, the underemployment rate, which measures the people in work but seeking more hours, stayed put at 8.1%. On the other hand, underutilisation, which combines unemployment and underemployment, eased marginally.

In seasonally adjusted terms, full-time employment dropped by 7,300 but part-time work increased by 11,300 roles. However, hours worked rose by 3.1 million. Job creation in the country is growing rather quickly at a pace of 2.3% while the population increase is recorded at just 1.6%.

The optimistic results boosted the Australian dollar to a one-month high, rising by 0.6%.